Harvest Properties and an affiliate of Lone Star Funds have formed a joint venture to recapitalize 600 California St., a 360,000-square-foot Class A office tower in San Francisco’s Financial District. Lone Star finalized the JV with San Francisco-based Harvest immediately after acquiring the property through a foreclosure process following its purchase of the underlying debt.
Under the terms of the agreement, Harvest will have an equity interest in the asset and serve as operating partner, overseeing day-to-day operations, leasing strategy and the execution of a targeted repositioning plan.“We believe that 600 California is well-positioned to benefit from the improving market dynamics in San Francisco behind further investment and we look forward to partnering with Harvest in this opportunity,” said Jérôme Foulon, global head of commercial real estate at Lone Star.
The 20-story building will now be able to compete aggressively as demand returns to San Francisco’s top tier office market, said Harvest partner Preston O’Connell. The company has engaged Christopher Roeder, Tom Doupe, Carlye Parker and Lexi Castellino in JLL’s San Francisco office as leasing agents.
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